ITC RELEASES REPORT
ON LIKELY EFFECTS OF DUTY-FREE ENTRY FOR GOODS UNDER THE GSP

The U.S. International Trade Commission (ITC) today released a public version of its report Advice
Concerning Possible Modifications to the U.S. Generalized System of Preferences, 2005 Review.

The ITC, an independent, nonpartisan, factfinding federal agency, submitted a confidential version of
the report to the U.S. Trade Representative (USTR) on November 10, 2005. The investigation was
requested by the USTR in a letter received on August 9, 2005.

As requested, the ITC provided advice with respect to the economic impact on U.S. industries of the
elimination of import duties for all GSP beneficiary countries for carrageenan classified under HTS
subheading 1302.39.0010.

The ITC also provided advice with respect to the restoration of India for duty-free treatment under the
GSP of ibuprofen under HTS subheading 2916.39.15. Additionally, the ITC provided advice as to the
impacts of granting a waiver of competitive need limits for the Philippines for dried mangos, HTS
subheading 0804.50.80; for Brazil for softwood plywood, HTS subheading 4412.19.40; and for Turkey
for certain travertine dimension stone, HTS subheadings 6802.21.10 and 6802.91.20. "Competitive
need limits" represent the maximum import level of a product that is eligible for duty-free treatment
under the GSP. Once the limit is reached, trade is considered "competitive," benefits are no longer
needed, and imports of the article become ineligible for GSP treatment, unless a waiver is granted.
With respect to the competitive need limit in section 503(c)(2)(A)(i)(I) of the 1974 Act, the
Commission, as requested, used the dollar value limit of $115,000,000.

Advice Concerning Possible Modifications to the U.S. Generalized System of Preferences, 2005
Review (Investigation No. 332-470, USITC publication 3819, November 2005) will be posted in the
Publications area of the ITC Internet site at www.usitc.gov. A printed copy may be requested by calling
202-205-1809 or by writing the Office of the Secretary, U.S. International Trade Commission, 500 E
Street SW, Washington, DC 20436. Requests may also be made by fax to 202-205-2104.

ITC general factfinding investigations, such as this one, cover matters related to tariffs or trade. The
investigations are generally conducted at the request of USTR, the Senate Committee on Finance, or
the House Committee on Ways and Means. The resulting reports convey the Commission's objective
findings and independent analyses on the subjects investigated. The Commission makes no
recommendations on policy or other matters in its general factfinding reports. Upon completion of
each investigation, the ITC submits its findings and analyses to the requester. General factfinding
investigation reports are subsequently released to the public, unless they are classified by the requester
for national security reasons.